Rachel Reeves’s shocking U-turn exposed after twice ruling out introducing wealth taxes

There is widespread speculation that Reeves will look to increase wealth taxes, like inheritance tax or capital gains tax or remove tax relief on pensions to plug a £22billion hole in the nation's finances.

She told LBC's News Agents podcast on Tuesday night: "I think that we will have to increase taxes in The Budget."

Asked directly whether she could rule out cutting pension tax relief, she told LBC Radio: "I'm not going to write a budget on this programme, but the commitments we made in our manifesto not to increase National Insurance, VAT or income tax and also the triple lock, our commitments in our manifesto, stand."

However, any decision to increase wealth taxes would be at odds with Reeves' interview with GB News at Rolls Royce's factory in Derby at the end of May.

Challenged then over whether she would unlock the "treasure chest" of wealth taxes if the Government won power, Reeves replied: "Labour will not be introducing wealth taxes."

Asked if this covered capital gains tax, she added: "Labour is not going to be introducing wealth taxes.

"Indeed, we've set forward our plans and they are all fully costed and fully funded, and there will be nothing in our manifesto that requires any further increases in taxation."

Asked about Reeves's remarks today, a Treasury source said: "I’d refer you to all the statements, interviews etc she’s given on this stuff over the past few days. Including the follow-up chat on News Agents."